The price must increase 10 times and the utility decrease 10 times.”
[Blockchain Today reporter Han Ji-hye] As more people compare the recent rise in the price of bitcoin to the Dutch Tulip Fever incident in the 17th century, industry experts refuted that “not at all”.
Tulip prices have risen unprecedentedly in the Netherlands in the 17th century. This is called’tulip fever’. In Korea, the online community is sometimes referred to as’tulip coin’. Recently, when an opinion comparing the rise of bitcoin price and Tulip Fever came out, industry insiders, including bitcoin investors, expressed their view that this is not the case at all.
According to Cointelegraph, Dan Tapeiro, co-founder of 10T Holdings, argued that “based on average income, it is difficult to compare Bitcoin or Ethereum to Tulip Fever.” .
◇Bitcoin vs Tulip Fever, not at all similar
From the end of 1636 to February 1637, the price of tulips soared as more people invested in tulips in the Netherlands. At the time, the price of tulips soared to 1,500 guilders. This was equivalent to the four-year wage of a skilled carpenter. And since then, the exact price of tulips is unknown, but it is said to have dropped by more than 90%.
Bitcoin opponents often compare the rise in cryptocurrency prices to Tulip Fever today. Both cryptocurrencies and tulips lack’intrinsic value’, and prices have skyrocketed for speculation purposes.
In response, Tapeyro said that for Bitcoin to be compared to Tulip Fever, the price must be 10 times the average US worker wage.
“During the Dutch Tulip Fever, tulips cost ten times the average’craftsman’ wage. Today’s’skilled worker’ earns around $32,000. Multiply this by 10 to get $320,000. And bitcoin is the tulip. In order to be compared to Fever, the utility value must also be reduced by 10 times.”
The Tulip Company and the British South Sea Company went on in an instant, but Bitcoin has been around for over 12 years. At that time, the South Sea Company incident also caused many victims to fall in stock quickly.
The $320,000 figure exceeds the Bitcoin short- and medium-term price potential. Although it varies from expert to expert, Bitcoin is estimated to have the potential to rise from $100,000 to $280,000.
Even if the price of bitcoin reaches the mythical level of tulips ($320,000), there is a difference in utility. Bitcoin is more valuable than gold.
The industry analyzes that Bitcoin has scarcity even compared to tulips and gold. This is contrary to the Tulip case because it functions to store value regardless of the price and how many people invest in bitcoin.
Meanwhile, Pierre Rochard, a bitcoin strategist at Kraken, the US cryptocurrency exchange, said, “Bitcoin is not too late to invest. It is because it will rise in the future.”